Perth technology company Structural Monitoring Systems has rejigged its listing plans, opting for a $3.75 million capital raising and listing on the Australian Stock Exchange.
SM Systems aims for ASX
Perth technology company Structural Monitoring Systems has rejigged its listing plans, opting for a $3.75 million capital raising and listing on the Australian Stock Exchange.
The company had previously been preparing for a listing on the London Stock Exchange’s Alternative Investment Market (AIM).
Its preparations included raising seed capital in the UK and conducting a takeover of the Australian company by UK company Stuctural Monitoring Systems plc.
Corporate director Tony Brennan said the directors concluded the company would obtain a “substantially higher valuation” by listing on the ASX.
The listing plans were affected by delays in obtaining product certification from the Federal Aviation Administration in the US.
In particular, the company’s nominated adviser in London said FAA certification was necessary to obtain the preferred valuation.
SMS has been operating for 10 years, has previously raised $17 million and has more than 800 shareholders who regularly trade their stock.
In light of this history, Mr Brennan described the share float, underwritten by Sydney firm KTM Capital, as “just another day in the evolution of the business”.
The company has an impressive client list that includes the world’s two largest aircraft manufacturers, Boeing and Airbus, and the US air force.
Its technology, first conceived in a backyard in Bassendean, tests the structural integrity of aircraft. Its vacuum-based sensor system detects fatigue, stress and cracks in metal, and would enable aircraft operators to reduce their time-consuming and costly manual testing.
The system could be retro-fitted to existing aircraft as well as being installed in new aircraft during manufacture.
It has been fitted to a Boeing DC9 passenger airliner in the US and will be tested for at least four months as part of the FAA certification process.
In the half year to December 2003, the company earned revenue of $0.5 million.
